10 Aug Carlyle says it will not increase ‘full and fair’ bid for UK pharmaceutical firm Vectura | Business News
The battle for British pharmaceutical firm Vectura will not go to auction, after one of the two hopefuls said at the last minute that it would not increase its bid.
US private equity firm Carlyle had made the first move for the Wiltshire-based FTSE 250-listed firm, makes inhaled medicines and devices to treat respiratory illnesses such as asthma.
But late on Tuesday, it said it would not go beyond its most recent offer of £958m, or 155p per share, saying it considered this “full and fair”.
Its rival Philip Morris International had offered 165p per share during the weekend, having previously said that such an acquisition would enable it to “expand into products beyond tobacco and nicotine, as part of a natural evolution into a broader healthcare and wellness company”.
Philip Morris and Carlyle had been set to go through an auction process after the takeover regulator stepped in ready to end the bidding stalemate if there was no resolution by Tuesday at 5pm.
News of Philip Morris’s interest in Vectura was met with concern from health experts from both sides of the Atlantic and in Europe.
The presidents of the American Lung Association and the American Thoracic Society said it was “reprehensible”, while the British Lung Foundation said: “It is not acceptable that they would then seek to profit further from treatments for the deadly diseases that tobacco causes.”